Nestlé India, a subsidiary of Swiss food giant Nestlé, is set to invest INR2.5bn ($45.4m) to upgrade its existing milk processing facility at Moga, Punjab over the next two years.
As part of the project, the company will take up technological enhancements, expansion and modernization of the facility. The investment is part of the company's plan to invest INR5bn ($90.8m) in plant, of which Nestlé had already spent INR2.5bn ($45.4m).
The Moga facility has a workforce of 25,000. The company purchases raw material worth INR6.5bn ($118.1m) to INR7bn ($127.2m) from Punjab annually.
Punjab chief minister Parkash Singh Badal said that the announcement will put an end to the rumours saying that the plant would be shut down.
The government will extend all possible cooperation and support to the company's investment plans in the near future, Badal added.
Currently, Nestlé sources milk from 1,10,000 dairy farmers in the state. In addition, the company is likely to establish a composite dairy centre featuring a veterinary hospital, model dairy farm, a breeding centre and a training facility for dairy entrepreneurs in the state. Nestlé also agreed in principle to upgrade three to four existing private dairy farms, which would encourage dairy entrepreneurs to employ dairy as an allied farming.
